Cloud Business Ups Microsoft's Earnings

Thanks again to its high-flying cloud business, Microsoft just reported better-than-expected earnings for its fiscal fourth quarter.

For the quarter ended June 30, the software giant reported non-GAAP revenue of $24.7 billion, non-GAAP operating income of $7 billion, and non-GAAP net income of $7.7 billion.

“Innovation across our cloud platforms drove strong results this quarter,” Microsoft CEO Satya Nadella stated.

Finishing the year strong, the company saw 30% growth in commercial bookings during the quarter, according to Amy Hood, EVP and CFO at Microsoft. LinkedIn contributed revenue of $1.1 billion during the quarter, Microsoft noted on Thursday.

Excluding traffic acquisition costs, search ad revenue was up 10% during the quarter, which Microsoft attributed to higher revenue per search and search volume.

Due primarily to lower phone revenue, personal computing revenue decreased 2% to $8.8 billion.

Microsoft recently said it would no longer be updating Windows Phone 8.1. As it stands, almost eight in 10 Microsoft consumers are still running Windows Phone 7, 8, or 8.1.

That’s despite the fact that, according to Microsoft, Windows 10 is now used on more than 500 million devices.

Rather than compete with Android or iOS, the company that Bill Gates built seems increasingly comfortable molding its mobile strategy around their dominance. Among other moves in that direction, Microsoft recently decided&nb sp;to give Windows users access to the iTunes app.

Perhaps stretching the meaning of the word, Microsoft isn’t entirely giving up on “mobile” hardware. It recently announced that AT&T, Vodafone and Orange were among the first mobile carriers to support Windows 10 “Always Connected” PCs, which are expected to hit store shelves later this year.

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